Examining coffee export performance in Eastern and Southern African countries: do bilateral trade relations matter?

Abstract

This study examines the impact and implications of the East African Community and the Common Market for Eastern and Southern Africa preferential trade agreements on coffee export performance of eight East and Southern African countries. The analysis employed a static and dynamic gravity modelling framework for the period 1998–2013. Following several robustness checks, the study found that regional trade agreements play a vital role in increasing coffee trading in East and Southern African countries. Factors including geographical distances, income, and population size in importing and exporting countries are also statistically significant determinants of coffee exports. The study also found that the exporting countries are currently under-performing with respect to their maximum potential to the global market indicating room for improvement.